Is it possible to buy a house before it is valued and then sell it after valuation?
Someone tried to get me join a scheme where we can buy the house in its earliest stage, before the land is valued.
I didnt pay a lot of attention to him so maybe some details i am not iterating accurately. But it sounds something like this.
He is telling me that the developer has already acquired the land and is trying to look for buyers. Once the land is valuated , and the valuation will be to the upwards, buyers can either hold till its built or sell for a profit.
The land is somewhere in liverpool. West side of waddicar lane, melling , Liverpool (freehold).
Is the scheme / practice a scam?
The scheme maybe a scam, but the practice? is it even possible to buy a land before it is valuated?
I didnt pay a lot of attention to him so maybe some details i am not iterating accurately. But it sounds something like this.
He is telling me that the developer has already acquired the land and is trying to look for buyers. Once the land is valuated , and the valuation will be to the upwards, buyers can either hold till its built or sell for a profit.
The land is somewhere in liverpool. West side of waddicar lane, melling , Liverpool (freehold).
Is the scheme / practice a scam?
The scheme maybe a scam, but the practice? is it even possible to buy a land before it is valuated?
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Original post by HucktheForde
Someone tried to get me join a scheme where we can buy the house in its earliest stage, before the land is valued.
I didnt pay a lot of attention to him so maybe some details i am not iterating accurately. But it sounds something like this.
He is telling me that the developer has already acquired the land and is trying to look for buyers. Once the land is valuated , and the valuation will be to the upwards, buyers can either hold till its built or sell for a profit.
The land is somewhere in liverpool. West side of waddicar lane, melling , Liverpool (freehold).
Is the scheme / practice a scam?
The scheme maybe a scam, but the practice? is it even possible to buy a land before it is valuated?
I didnt pay a lot of attention to him so maybe some details i am not iterating accurately. But it sounds something like this.
He is telling me that the developer has already acquired the land and is trying to look for buyers. Once the land is valuated , and the valuation will be to the upwards, buyers can either hold till its built or sell for a profit.
The land is somewhere in liverpool. West side of waddicar lane, melling , Liverpool (freehold).
Is the scheme / practice a scam?
The scheme maybe a scam, but the practice? is it even possible to buy a land before it is valuated?
Some parts of this make little sense. Who has the developer bought the land from? How was the price that they paid established? If a price has been established, then why would the valuation reveal a different (higher price)? If the price is going to increase following the valuation, why would the developer want to sell now, and not wait until after the valuation has happened?
What it might be is the developer has purchased land for which no planning permission exists. The land will become more valuable once planning permission is granted, although there's a risk that planning permission will not be granted. The developer doesn't want to take that risk, so they'd rather sell the land now (for a smaller but guaranteed profit) rather than risk the land becoming effectively worthless if planning permission is denied.
I don't really know how this process works, but it sounds very suspicious to me.
Don’t do it, sounds really dodgy.
Original post by DataVenia
What it might be is the developer has purchased land for which no planning permission exists. The land will become more valuable once planning permission is granted, although there's a risk that planning permission will not be granted. The developer doesn't want to take that risk, so they'd rather sell the land now (for a smaller but guaranteed profit) rather than risk the land becoming effectively worthless if planning permission is denied.
I don't really know how this process works, but it sounds very suspicious to me.
What it might be is the developer has purchased land for which no planning permission exists. The land will become more valuable once planning permission is granted, although there's a risk that planning permission will not be granted. The developer doesn't want to take that risk, so they'd rather sell the land now (for a smaller but guaranteed profit) rather than risk the land becoming effectively worthless if planning permission is denied.
I don't really know how this process works, but it sounds very suspicious to me.
oh yes. thats what he meant. i am sorry if i am not explaining it articulately. he tried to convince me for with a 1 hour half speech... i was bored and didnt register everything. he said something to do with the planning permission. they said they studied the land well and is confident that once the planning is granted, they can start building and the value will go up.
he also dared me to check out the HM land registry. which i just tried but its down for maintenance....
(edited 10 months ago)
Unless you’re buying it with cash outright, the lender will require a valuation as a prerequisite in any case.
This just sounds like a riff on a timeshare scam to me.
This just sounds like a riff on a timeshare scam to me.
Original post by HucktheForde
oh yes. thats what he meant. i am sorry if i am not explaining it articulately. he tried to convince me for with a 1 hour half speech... i was bored and didnt register everything. he said something to do with the planning permission. they said they studied the land well and is confident that once the planning is granted, they can start building and the value will go up.
he also dared me to check out the HM land registry. which i just tried but its down for maintenance....
he also dared me to check out the HM land registry. which i just tried but its down for maintenance....
If anyone spends an hour and a half trying to convince you what a wonderful idea it is for you to buy something, then it's a safe bet that it's actually a bad idea to do so.
Original post by DataVenia
If anyone spends an hour and a half trying to convince you what a wonderful idea it is for you to buy something, then it's a safe bet that it's actually a bad idea to do so.
It usually takes them that long to distract you from the fact that they're not putting their own money into this "once in a lifetime time risk-free scheme".
Original post by Sorcerer of Old
Don’t do it, sounds really dodgy.
btw i do agree its dodgy.
He told me to hurry up as there are only 8 units left and its selling like hot cakes. He just messaged me yesterday again and tried hard to get me to sign up... if its selling like hot cakes surely they dont mind if i decline as they can easily replace me with another investor?
Original post by DataVenia
If anyone spends an hour and a half trying to convince you what a wonderful idea it is for you to buy something, then it's a safe bet that it's actually a bad idea to do so.
i digged my whatsapp msg and i only have this that i can share... the pdf file for proof of land ownership.
anyway i dont think its an outright scam ,but i think he did not explain the risk properly ... there maybe hidden risk that i dont know of.
i am an amateur and i dont know what the pdf document means. anyone can do some detective work and find out more information?
(edited 10 months ago)
sounds edgy anyways, updates us so we know pls
Original post by HucktheForde
btw i do agree its dodgy.
He told me to hurry up as there are only 8 units left and its selling like hot cakes. He just messaged me yesterday again and tried hard to get me to sign up... if its selling like hot cakes surely they dont mind if i decline as they can easily replace me with another investor?
i digged my whatsapp msg and i only have this that i can share... the pdf file for proof of land ownership.
anyway i dont think its an outright scam ,but i think he did not explain the risk properly ... there maybe hidden risk that i dont know of.
i am an amateur and i dont know what the pdf document means. anyone can do some detective work and find out more information?
He told me to hurry up as there are only 8 units left and its selling like hot cakes. He just messaged me yesterday again and tried hard to get me to sign up... if its selling like hot cakes surely they dont mind if i decline as they can easily replace me with another investor?
i digged my whatsapp msg and i only have this that i can share... the pdf file for proof of land ownership.
anyway i dont think its an outright scam ,but i think he did not explain the risk properly ... there maybe hidden risk that i dont know of.
i am an amateur and i dont know what the pdf document means. anyone can do some detective work and find out more information?
oh theres a video as well, he sent me. but not sure how can i upload to tsr
Original post by DataVenia
Some parts of this make little sense. Who has the developer bought the land from? How was the price that they paid established? If a price has been established, then why would the valuation reveal a different (higher price)? If the price is going to increase following the valuation, why would the developer want to sell now, and not wait until after the valuation has happened?
What it might be is the developer has purchased land for which no planning permission exists. The land will become more valuable once planning permission is granted, although there's a risk that planning permission will not be granted. The developer doesn't want to take that risk, so they'd rather sell the land now (for a smaller but guaranteed profit) rather than risk the land becoming effectively worthless if planning permission is denied.
I don't really know how this process works, but it sounds very suspicious to me.
What it might be is the developer has purchased land for which no planning permission exists. The land will become more valuable once planning permission is granted, although there's a risk that planning permission will not be granted. The developer doesn't want to take that risk, so they'd rather sell the land now (for a smaller but guaranteed profit) rather than risk the land becoming effectively worthless if planning permission is denied.
I don't really know how this process works, but it sounds very suspicious to me.
What you say makes sense and good advice
Original post by Admit-One
It usually takes them that long to distract you from the fact that they're not putting their own money into this "once in a lifetime time risk-free scheme".
yes sounds abit sus to me too!! How much is asking you to invest?
@DataVenia so whats your verdict? i lost enough money gambling i am not losing money to these stuff.. 
anyway he is probably going to call again, should i ask him to explain the whole scheme again... another 1 hour + prob. then i'll take notes this time
or should i tell him to eff off... 
or are there any merits to his claims?
around 20 grand
anyway he is probably going to call again, should i ask him to explain the whole scheme again... another 1 hour + prob. then i'll take notes this time
or should i tell him to eff off... or are there any merits to his claims?
Original post by Kutie Karen
yes sounds abit sus to me too!! How much is asking you to invest?
around 20 grand
(edited 10 months ago)
Original post by HucktheForde
@DataVenia so whats your verdict? i lost enough money gambling i am not losing money to these stuff..
anyway he is probably going to call again, should i ask him to explain the whole scheme again... another 1 hour + prob. then i'll take notes this time or should i tell him to eff off...
or are there any merits to his claims?
around 20 grand
anyway he is probably going to call again, should i ask him to explain the whole scheme again... another 1 hour + prob. then i'll take notes this time
or should i tell him to eff off... or are there any merits to his claims?
around 20 grand
That souns a lot to me and really not worth the punt! Why is he pressuring you if he they are sellign like hot cakes. He doesn't need to waste time on making you invest. Not feeling this one.
Original post by Kutie Karen
That souns a lot to me and really not worth the punt! Why is he pressuring you if he they are sellign like hot cakes. He doesn't need to waste time on making you invest. Not feeling this one.
exaclty. i am feeling like sitting this one out, see how it does and if they make money for their investors over the next few years . they told me this is their second project, the first one is in brisbane.
the problem is how do we verify their claims. i have to find people who bought into the scheme and see if they made money..
Original post by HucktheForde
exaclty. i am feeling like sitting this one out, see how it does and if they make money for their investors over the next few years . they told me this is their second project, the first one is in brisbane.
the problem is how do we verify their claims. i have to find people who bought into the scheme and see if they made money..
the problem is how do we verify their claims. i have to find people who bought into the scheme and see if they made money..
That is exactly what they are relying on you not finding out the truth and investing blindly. You hang onto to your money.and find better opportunties
It's a scam.
They've bought up some cheap land, and are claiming that once it's valued it'll be worth more.
Once you've bought it, you'll get it valued. The valuation will confirm it's not worth much -- probably less than what you've paid.
Yes, it will be worth more if you get planning permission, particularly if it's planning permission for housing. But it's likely that the land is not in an area that will be granted planning permission any time soon (maybe not for decades). Perhaps it's on the flood plain; perhaps the land is contaminated; maybe it's in the green belt.
Even if it is suitable for housing at some point, a larger area will need to have roads and infrastructure laid out. Will the portion you own be accessible? Or will it be compeletely surrounded by plots owned by other people? How will you negotiate with them as to the design/layout of the estate?
They've bought up some cheap land, and are claiming that once it's valued it'll be worth more.
Once you've bought it, you'll get it valued. The valuation will confirm it's not worth much -- probably less than what you've paid.
Yes, it will be worth more if you get planning permission, particularly if it's planning permission for housing. But it's likely that the land is not in an area that will be granted planning permission any time soon (maybe not for decades). Perhaps it's on the flood plain; perhaps the land is contaminated; maybe it's in the green belt.
Even if it is suitable for housing at some point, a larger area will need to have roads and infrastructure laid out. Will the portion you own be accessible? Or will it be compeletely surrounded by plots owned by other people? How will you negotiate with them as to the design/layout of the estate?
Original post by martin7
It's a scam.
They've bought up some cheap land, and are claiming that once it's valued it'll be worth more.
Once you've bought it, you'll get it valued. The valuation will confirm it's not worth much -- probably less than what you've paid.
Yes, it will be worth more if you get planning permission, particularly if it's planning permission for housing. But it's likely that the land is not in an area that will be granted planning permission any time soon (maybe not for decades). Perhaps it's on the flood plain; perhaps the land is contaminated; maybe it's in the green belt.
Even if it is suitable for housing at some point, a larger area will need to have roads and infrastructure laid out. Will the portion you own be accessible? Or will it be compeletely surrounded by plots owned by other people? How will you negotiate with them as to the design/layout of the estate?
They've bought up some cheap land, and are claiming that once it's valued it'll be worth more.
Once you've bought it, you'll get it valued. The valuation will confirm it's not worth much -- probably less than what you've paid.
Yes, it will be worth more if you get planning permission, particularly if it's planning permission for housing. But it's likely that the land is not in an area that will be granted planning permission any time soon (maybe not for decades). Perhaps it's on the flood plain; perhaps the land is contaminated; maybe it's in the green belt.
Even if it is suitable for housing at some point, a larger area will need to have roads and infrastructure laid out. Will the portion you own be accessible? Or will it be compeletely surrounded by plots owned by other people? How will you negotiate with them as to the design/layout of the estate?
thanks for advice
Original post by HucktheForde
Someone tried to get me join a scheme where we can buy the house in its earliest stage, before the land is valued.
I didnt pay a lot of attention to him so maybe some details i am not iterating accurately. But it sounds something like this.
He is telling me that the developer has already acquired the land and is trying to look for buyers. Once the land is valuated , and the valuation will be to the upwards, buyers can either hold till its built or sell for a profit.
The land is somewhere in liverpool. West side of waddicar lane, melling , Liverpool (freehold).
Is the scheme / practice a scam?
The scheme maybe a scam, but the practice? is it even possible to buy a land before it is valuated?
I didnt pay a lot of attention to him so maybe some details i am not iterating accurately. But it sounds something like this.
He is telling me that the developer has already acquired the land and is trying to look for buyers. Once the land is valuated , and the valuation will be to the upwards, buyers can either hold till its built or sell for a profit.
The land is somewhere in liverpool. West side of waddicar lane, melling , Liverpool (freehold).
Is the scheme / practice a scam?
The scheme maybe a scam, but the practice? is it even possible to buy a land before it is valuated?
Yes, it's a scam.
Original post by HucktheForde
@DataVenia so whats your verdict? i lost enough money gambling i am not losing money to these stuff..
anyway he is probably going to call again, should i ask him to explain the whole scheme again... another 1 hour + prob. then i'll take notes this time or should i tell him to eff off...
or are there any merits to his claims?
around 20 grand
anyway he is probably going to call again, should i ask him to explain the whole scheme again... another 1 hour + prob. then i'll take notes this time
or should i tell him to eff off... or are there any merits to his claims?
around 20 grand
All that PDF shows is who owned that plot of land last September. I wouldn't "invest" £1 in this scheme - let alone £20K.
(edited 10 months ago)
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